A Bankruptcy Attorney Can Stop A Zombie Debt Attack

Recently, there've been many articles written on the topic of zombie debt

. For those people who don't know, zombie debt is the debt that collection agencies know has been discharged in a bankruptcy filing, yet they continue to buy and sell it as if it's legal to collect on it. In the financial world, debt collection companies are the bottom feeders of the industry. Many of these companies use unscrupulous tactics to collect on debts that are technically not collectible. Using strong-arm tactics, they force people into paying them extortion money to avoid the threat of a lawsuit or falsely reporting on one's credit. The main reason for the popularity of this kind of debt from debt collection companies is it is bought for pennies on the dollar. These traffickers of debt, repackage their bad as collectible and sell it for a large profit. Companies that buy the debt, go after the debtor with a vengeance even though the debt might have been included in the bankruptcy discharge when the individual was filing bankruptcy.

There was an article in BusinessWeek entitled prisoners of debt that discussed the zombie debt in particular. It seems, that many of these companies search for debt that was included in a bankruptcy filing, even though the debt is legally uncollectible. A bankruptcy attorney can tell you of many stories of how creditors are attempting to collect on debts that have even passed the statute of limitations and is no longer collectible. It appears that these unscrupulous debt collection companies prey on individuals after filing bankruptcy by re-reporting the debt to the big three credit reporting agencies. After that, the debt will continue to weigh down one's attempts of rebuilding their credit after the bankruptcy filing. Unable to get lower interest rates on an automobile or a home, the debtor will many times bow down to the extortion attempts of the debt collection company to make go away. After someone goes through the stress of filing bankruptcy, they should not have to worry about debts that were included in the bankruptcy discharge.

The light at the end of the tunnel is this practice is completely illegal and the consumer can receive remedies for being violated by a debt collection company. If a debt was included in a bankruptcy discharge, the debtor should contact their bankruptcy attorney and report the illegal activity by the creditor. The bankruptcy attorney can go after the creditors using the remedies under the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. These laws were written to protect consumers from creditors that don't like to play by the rules.

This is another reason, why an individual after filing bankruptcy, needs to keep a close eye on their credit report post bankruptcy. Many times it is just a mistake that can be corrected, but in some cases, it could be maliciously being done to extort money from an already beaten down debtor. These unscrupulous companies know that many of these people don't have the fight left in them nor the resources and they end up just paying. The funny thing is, rarely are tactics played out by the original creditors. Usually, zombie debts have been sold multiple times and most of the companies that own them don't care where they came from. Because of the egregious nature of these creditors, people need to send a message and have their bankruptcy attorney for them where it counts, in their pocketbook.

by: Lara Carter

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